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US Air Force awards Houston geothermal co. $1.9M grant project

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Houston startup Sage Geosystems has announced a new $1.9 million deal with the Air Force. Photo via sagegeosystems.com

The Department of the Air Force awarded Houston geothermal company Sage Geosystems Inc. a grant of $1.9 million in a first-of-its kind contract to determine whether a power plant using Geopressured Geothermal Systems is able to generate clean energy “needed for a base to achieve energy resilience,” according to a news release. The Sage facility will be the first GGS facility in the world to generate electricity, and the system will be constructed at an off-site test well in Starr County, Texas.

”We are excited to partner with the U.S. Air Force on this geothermal demonstration project,” CEO of Sage Geosystems Cindy Taff says in a news release. “Next generation geothermal technologies, like Sage Geosystems’ GGS, will be critical in providing energy resiliency at U.S. military installations.”

In addition to the grant, the company will match the grant with an additional $1.9 million for the demonstration project. The collaboration with Sage is one of three geothermal pilot projects the DAF has initiated in regards to next-generation geothermal technologies in 2024.

“We feel this is the launch pad of helping not only the DoD but many other applications throughout global markets,” 147th Civil Engineer Squadron Commander Lt Col Christian Campbell says in the release.

According to the DAF, the possibility of a full-scale project at Ellington Field Joint Air Reserve Base in Houston could usher in a new era of clean power producing plants to help meet the requirements for bases.

“This initial contract is a step forward in the Air Force’s push for energy resilience,” Kirk Phillips, director of the Air Force Office of Energy Assurance, adds in the release. “This project will improve Ellington Field’s ability to maintain operations during electrical grid outages and be completely self-sufficient for their energy needs.”

The GGS process works by repurposing fracking technology to extract thermal energy from below the Earth’s surface.GGS also demonstrates the opportunity for the civilian sector by surpassing the intermittency challenges for solar and wind energy generation. GSS can also work towards minimizing land use, which enables the technology to be used in urban areas without relying on transmission line build outs that can be expensive.

“This project, and the future Department of the Air Force projects that it paves the way for, will help to assure that our national security needs are met by our installations during critical emergencies,” Phillips continues.

The six finalists for the sustainability category for the 2023 Houston Innovation Awards weigh in on their challenges overcome. Photos courtesy

4 biggest challenges of Houston-based sustainability startups

Houston innovation awards

Six Houston-area sustainability startups have been named finalists in the 2023 Houston Innovation Awards, but they didn't achieve this recognition — as well as see success for their businesses — without any obstacles.

The finalists were asked what their biggest challenges have been. From funding to market adoption, the sustainability companies have had to overcome major obstacles to continue to develop their businesses.

The awards program — hosted by EnergyCapital's sister site, InnovationMap, and Houston Exponential — will name its winners on November 8 at the Houston Innovation Awards. The program was established to honor the best and brightest companies and individuals from the city's innovation community. Eighteen energy startups were named as finalists across all categories, but the following responses come from the finalists in the sustainability category specifically.

    Click here to secure your tickets to see who wins.

    1. Securing a commercial pilot

    "As an early-stage clean energy developer, we struggled to convince key suppliers to work on our commercial pilot project. Suppliers were skeptical of our unproven technology and, given limited inventory from COVID, preferred to prioritize larger clients. We overcame this challenge by bringing on our top suppliers as strategic investors. With a long-term equity stake in Fervo, leading oilfield services companies were willing to provide Fervo with needed drilling rigs, frack crews, pumps, and other equipment." — Tim Latimer, founder and CEO of Fervo Energy

    2. Finding funding

    "Securing funding in Houston as a solo cleantech startup founder and an immigrant with no network. Overcome that by adopting a milestone-based fundraising approach and establishing credibility through accelerator/incubator programs." — Anas Al Kassas, CEO and founder of INOVUES

    "The biggest challenge has been finding funding. Most investors are looking towards software development companies as the capital costs are low in case of a risk. Geothermal costs are high, but it is physical technology that needs to be implemented to safety transition the energy grid to reliable, green power." — Cindy Taff, CEO of Sage Geosystems

    3. Market adoption

    "Market adoption by convincing partners and government about WHP as a solution, which is resource-intensive. Making strides by finding the correct contacts to educate." — Janice Tran, CEO and co-founder of Kanin Energy

    "We are creating a brand new financial instrument at the intersection of carbon markets and power markets, both of which are complicated and esoteric. Our biggest challenge has been the cold-start problem associated with launching a new product that has effectively no adoption. We tackled this problem by leading the Energy Storage Solutions Consortium (a group of corporates and battery developers looking for sustainability solutions in the power space), which has opened up access to customers on both sides of our marketplace. We have also leveraged our deep networks within corporate power procurement and energy storage development to talk to key decision-makers at innovative companies with aggressive climate goals to become early adopters of our products and services." — Emma Konet, CTO and co-founder of Tierra Climate

    4. Long scale timelines

    "Scaling and commercializing industrial technologies takes time. We realized this early on and designed the eXERO technology to be scalable from the onset. We developed the technology at the nexus of traditional electrolysis and conventional gas processing, taking the best of both worlds while avoiding their main pitfalls." — Claus Nussgruber, CEO of Utility Global

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    Houston’s power future: The role of energy efficiency and demand response

    The View from HETI

    In Houston, industrial expansion, advanced manufacturing, data centers, AI, electrification, and population growth are all increasing demand for power across the region. At the same time, the infrastructure needed to support that growth, from generation and transmission to distribution and storage, takes significant time and investment to plan and build.

    This growing power demand creates a near-term challenge: how can the region support new investment while major grid projects are planned and built?

    A new report from the Houston Energy Transition Initiative, “Role of Efficiency & Demand Response to Meet Near-Term Regional Power Demand”, examines how Houston can get more from the grid it has today. Its central finding: energy efficiency (EE) and demand response (DE) can create measurable grid “headroom” while new major infrastructure projects are being planned, financed, permitted and built.

    Explore the key takeaways from the report:

    Houston’s power challenge affects economic growth

    Houston’s ability to attract industrial investment increasingly depends on reliable, affordable power. ERCOT and MISO Texas project major load growth through 2030 and 2035 from industrial development, data centers, AI, advanced manufacturing and electrification.

    Efficiency and demand response can lower peak demand and help manage local grid constraints that could slow growth.

    EE and DE are different tools, and Houston needs both

    Energy efficiency creates lasting reductions in electricity use through equipment upgrades, building improvements and changes in operations. Demand response lets customers temporarily reduce or shift power use based on grid conditions, incentives or market signals.

    Texas programs show measurable results

    In 2024, Texas investor-owned utility programs delivered about 609 MW of evaluated demand reduction and 603 GWh of annual energy savings. The report puts the lifetime cost of saved energy at about $0.02 per kWh.
    CenterPoint Energy accounted for more than 40% of ERCOT investor-owned utilities’ total demand reduction and energy savings. It achieved about 236 MW of peak demand reduction and 229 GWh of energy savings, above goals of 66 MW and 116 GWh.

    Entergy Texas also achieved significantly more demand reduction and energy savings than its 2024 program year goals, with a reported 24 MW of peak demand reduction against a goal of 17 MW and 43 GWh of energy savings against a goal of 30 GWh.

    Large power users can add flexibility

    Data centers, industrial facilities and advanced manufacturers may be able to shift noncritical work, adjust cooling, use on-site resources or briefly cut consumption.

    The report states that verified demand savings, flexible loads and behind-the-meter resilience could help reduce interconnection risk and support more cost-effective growth.

    Technology can expand options

    Storage, smart controls and energy management systems can work with efficiency and demand response. Smaller loads can also be combined across commercial buildings, multifamily developments and homes.

    For Houston, these tools do not replace new generation, transmission, distribution or storage. They can help the region use existing infrastructure more effectively while new capacity is built, supporting reliable, affordable power and continued economic growth.

    ———

    This article originally appeared on the Greater Houston Partnership's Houston Energy Transition Initiative blog. HETI exists to support Houston's future as an energy leader. For more information about the Houston Energy Transition Initiative, visit htxenergytransition.org. Download your copy of Role of Efficiency & Demand Response to Meet Near-Term Regional Power Demand to learn more.

    Clean energy leaders taking the stage at Houston Energy and Climate Week

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    Some of the biggest names in the clean energy scene will be sharing their expertise in Houston this week.

    From leaders fresh off one of the industry's biggest IPOs to local organizers, here's who's speaking at promising panels and anchor events during Houston Energy and Climate Week—taking place now through Sept. 18. Visit each event's website for a full lineup.

    Read more about Houston Energy and Climate Week and its programming in Energy Capital's event preview. Or learn more about the startups pitching at events throughout the week here.

    Energy Solutions in a New Era Hosted by JERA & Mitsubishi Heavy Industries — Sept. 15 at the Ion

    • Mary Dhillon, strategy manager at Fervo Energy
    • Ricky Sakai, SVP of investment & business development at Mitsubishi Heavy Industries America
    • Daniel Padilla, strategy & business development lead at Emerald AI
    • Adrian Trömel, chief innovation officer / interim vice president for innovation at Rice University (moderator)
    • Shigeki Uchihashi, VP of strategy & corporate venturing at JERA Americas

    Cypher Pilotathon and Startup Showcase — Sept. 15 at POST Houston

    • Nada Ahmed, co-founder and CRO of Energytech Cypher
    • Taylor Chapman, investment principal at New Climate Ventures
    • Jason Ethier, co-founder and CEO of Energytech Cypher
    • Sean Kelly, CEO of Amperon
    • Ionel Nechiti, investment director for Aramco Ventures
    • Hema Prapoo, global energy industry leader from Microsoft
    • Ishan Rao, VP of commercial at Syzygy Plasmonics

    Greentown Climatetech Summit — Sept. 16 at Greentown Labs

    • Arne Ballantine, co-founder of Ohmium International
    • David Baldwin, partner at SCF Partners
    • Christopher Hanson, former chair of the U.S. Nuclear Regulatory Commission
    • Tim Latimer, CEO and co-founder of Fervo Energy
    • Georgina Campbell Flatter, CEO of Greentown Labs
    • Nicolaus Radford, CEO and co-founder of Persona AI
    • Prag Mishra, chief AI officer at Armada
    • Jeremy Pitts, managing director at Activate
    • Bobby Gallagher, CEO, CTO and co-founder of Deployable Energy
    • Jason Wells, chair, president and CEO of CenterPoint Energy
    • Eliecer Viamontes, CEO of Entergy Texas

    Rice Alliance Energy Tech Venture Forum — Sept. 17 at Rice University’s Jones Graduate School of Business

    • Laurent Alteirac, enabling technology development manager at SLB
    • Kemal Anbarci, managing executive and general manager of venture capital at Chevron Technology Ventures
    • Sameer Bandhu, managing director of ventures and licensing at GE Vernova
    • Brad Burke, former associate vice president at Rice Office of Innovation and former executive director of Rice Alliance for Technology and Entrepreneurship at Rice University (moderator)
    • Andres Cabada, managing director at Halliburton Labs
    • Quennie Co, managing partner at Shell Ventures
    • Rob Crane, technology scouting & venturing manager at ExxonMobil
    • Ira Ehrenpreis, founder and managing partner at DBL Partners
    • Menachem Elimelech, director of Rice Center for Membrane Excellence (RiCeME) at Rice University
    • Brian Iversen, founder & managing partner at Cimbria Capital
    • Dustin Kinder, CEO of Maverick Water Group
    • Megan Lund, lead of venturing strategy & strategic partnerships at Woodside Energy
    • Sean Maher, vice president of investor relations & chief economist at Phillips 66
    • Robert Mellors, SUPERHOT program director at ARPA-E
    • John (JR) Reale, interim associate vice president for industry and new ventures at Rice University and executive director of Rice Alliance for Technology and Entrepreneurship at Rice University
    • Chad Seely, SVP of regulatory policy, general counsel, chief compliance officer, and corporate secretary at ERCOT
    • David Sholl, executive vice president for research and professor of chemical & biomolecular engineering at Rice University
    • Jim Sledzik, managing director of strategic venturing, North America, at Aramco Ventures

    New 160MW battery storage project comes online in Houston

    powered on

    Colorado-based energy storage company SMT Energy and North Carolina-based software company FlexGen have begun operations of Houston IV, a 160-megawatt utility-scale battery storage facility that aims to support the ERCOT grid.

    The companies delivered the project in just six weeks, according to a news release. Mississippi-based Irby Construction Company served as the engineering, procurement, and construction (EPC) partner, and CenterPoint Energy will serve as the interconnecting utility.

    “FlexGen’s distinctive combination of software automation, our remote operations center, and on-the-ground field expertise all work together to accelerate battery deployment,” Jason Rislov, SVP of operations at FlexGen, said in the release. “What used to take 25-plus weeks took us six. That time saved translates directly into giving the grid and consumers what they need most right now: a more reliable, resilient energy system.”

    Houston IV is one of more than 12 projects that SMT and FlexGen have built to connect to ERCOT, according to Energy Storage News.

    “Bringing a 160-MW battery storage facility online in just six weeks required disciplined planning, seamless coordination, and an unwavering focus on safety and quality,” Shaun Coleman, project manager at Irby Construction, said in a news release. “The SMT Energy, FlexGen, and Irby Construction teams coordinated engineering, procurement, and construction to keep every workstream aligned, identify challenges early, and maintain safety and quality at an accelerated pace. That integration is critical, not only to delivering projects quickly, but also to ensuring battery storage facilities perform reliably over the long term.”

    Houston IV is expected to store and provide enough electricity to power 8,800 homes in Texas annually. In March, SMT Energy secured $135 million in funding for the project from Macquarie and KeyBanc Capital Markets as joint lead arrangers. SMT and FlexGen broke ground to signal the start of the process in May.

    In 2023, SMT Energy and joint venture partner SUSI Partners also announced plans to add 10 battery storage projects to Texas, which would double capacity from 100 megawatts to 200 megawatts in the Houston and Dallas areas.

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